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Abu Dhabi’s ADGM regulator fines Eshara Capital and its CEO for breach

Abu Dhabi’s ADGM regulator fines Eshara Capital and its CEO for breach

The investment fund and its CEO were individually fined $10,000 for failing to submit audit reports on time

Abu Dhabi Global Market (ADGM)’s regulator has fined investment fund Eshara Capital and its CEO and founder Alexander David Guy for “breaching financial and regulatory reporting requirements”.

Eshara received licence from the FSRA in 2016 to undertake regulated activities in the ADGM.

However, the FSRA found that “Eshara failed, without reasonable excuse”, to ensure that required audit reports and regulatory returns were submitted within the stipulated timeframes, a statement on Tuesday said.

“The breaching of fundamental financial and regulatory reporting requirements for an extended period of time in this case prevented the FSRA from accessing material information concerning the activities and financial resources of Eshara,” the statement explained.

In line with the violation, the FSRA imposed a financial penalty of $10,000 on the company.

A financial penalty of $10,000 was also imposed on Guy for failing to ensure that his firm complied with its relevant reporting requirements.

“As a financial services regulator, the FSRA has to maintain a transparent and well-regulated platform to ensure the robustness and integrity of the marketplace,” the statement said.

“Authorised persons, including senior office executives, must ensure that the firm for which they are responsible submits, amongst other things, audit reports and regulatory returns to the FSRA within specific timeframes.

“The FSRA expects all ADGM registered entities to carry out their duties and requirements as stipulated under FSRA administered regulations and rules,” it added.

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